Riverside Capital has this month completed on the sale of a fitness centre in Derby for £9.85 million.
The sale represents a net initial yield of 5.14%.
The property, let to Nuffield Health on a 25 year lease, was sold to Knight Frank Investment Management.
The sale provided investors with an IRR of 8.47% over the 3.5 year hold period and a return on equity of 30.16%.
“Occupied by Virgin Active at the time of acquisition, we acquired this property for our investors in 2015 with the opportunity of a lease restructure to provide capital growth. Assigning the lease to Nuffield improved the tenant covenant whilst also ensuring income levels were maintained. This is a good example of how a lease restructure can provide value add and capital appreciation” Ashley Wilcox, Investment Director.